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Wage and Health Benefit Restructuring in California’s Grocery Industry: Public Costs and Policy Implications

Abstract

In this paper, we extrapolate the compensation terms of the new Southern California labor agreement to grocery workers statewide, calculate the resulting impact on workers’ wages and benefits over the life of the contract, and project the fiscal impact on California’s publicly supported health care programs as workers who were once covered by employer based health insurance are forced to rely on the public health system either because of ineligibility for health benefits or the inability to afford insurance.

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